Vroom, Inc. (VRM) AI Stock Analysis

• Market Cap: $100.14M
• Dividend Yield: N/A
• Average Volume (3M): 2.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: -81.31%
• EPS Growth: 87.13%
• Country: US
• Employees: 704
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -5.22
• Shares Outstanding: 5,199,620
• 10 Day Avg. Volume: 2,692
• 30 Day Avg. Volume: 2,937
• PEG Ratio: <0.01
• Price to Book (P/B): -0.30
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -0.09
• Enterprise Value/Market Cap: 8.68
• Enterprise Value/Revenue: 307.32
• Enterprise Value/Gross Profit: -64.57
• Enterprise Value/Ebitda: -64.38
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $18.50 ▲(1.09% Upside)

The score is primarily held down by severe revenue decline, persistently negative margins, and high leverage that limits financial flexibility. Technicals also lean bearish with price below key moving averages and a negative MACD. Liquidity is helped by positive TTM free cash flow and the recent $22.5M financing, but these positives are not yet large enough to offset the weak earnings profile and balance-sheet risk.

Positive Factors

Cash Generation

TTM positive OCF (~$32.1M) and FCF (~$25.3M) indicate core e-commerce used-car operations can generate cash after years of outflows. Sustained cash generation provides runway for reconditioning, logistics and working capital, reducing near-term liquidity strain versus relying solely on external financing.

Liquidity Support from Financing

The $22.5M preferred issuance (and prior note purchase) materially bolsters liquidity and extends operational runway. Structurally, committed capital reduces immediate default risk and buys time to execute strategic fixes, though the terms create ongoing cash distribution obligations and potential conversion dilution.

Investments in BI and Credit

Ongoing investment in business intelligence and credit decision engines addresses durable drivers of profitability: better sourcing/pricing, tighter credit selection and improved reconditioning allocation. These capabilities can sustainably raise margins and reduce bad-debt and holding costs if effectively deployed.

Negative Factors

Revenue Contraction

A ~50.5% TTM revenue decline reflects a severe loss of scale that undermines the platform's economics. Large top-line contraction reduces purchasing leverage, reconditioning throughput and fixed-cost absorption, making it harder to restore durable profitability and competitive positioning without revenue stabilization.

High Leverage

Debt (~$781M) versus equity (~$127M) yields elevated leverage (~6.2x), leaving a thin equity cushion. Structurally this raises refinancing risk, constrains strategic investments, and magnifies losses from any further revenue or margin deterioration given limited balance-sheet flexibility.

Negative Unit Economics

TTM gross margin (~-4.8%) and net margin (~-27.7%) show current unit economics are structurally unprofitable. Persistent negative margins hinder retained-earnings recovery, require continual external financing to sustain operations, and indicate fundamental changes in sourcing, pricing or cost structure are needed for long-term viability.

Vroom, Inc. Business Overview & Revenue Model

Company Description

Vroom, Inc. operates as an e-commerce used automotive retailer in the United States. It operates end-to-end ecommerce platform for buying, selling, transporting, reconditioning, pricing, financing, registering, and delivering vehicles. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. The company was incorporated in 2012 and is headquartered in New York, New York.

How the Company Makes Money

Vroom generates revenue primarily through the sale of used vehicles. The company operates on a direct-to-consumer model, purchasing vehicles from various sources, reconditioning them, and then selling them at a markup to customers. In addition to vehicle sales, Vroom also earns revenue from financing services, offering consumers financing options through partnerships with third-party lenders. This financing model allows Vroom to earn fees and interest from loans. Additionally, the company may generate income through vehicle trade-ins, where customers can sell their old cars to Vroom, enhancing inventory while providing consumers with a seamless transaction. Strategic partnerships with financial institutions and automotive service providers also play a crucial role in expanding Vroom's offerings and driving revenue growth.

Vroom, Inc. Financial Statement Overview

Summary

Financial profile is weak: revenue has contracted sharply (~-50.5% TTM) with deeply negative profitability (TTM gross margin ~-4.8%, net margin ~-27.7%). Leverage is high (debt-to-equity ~6.2x) and equity was negative in 2024, limiting flexibility. A partial offset is the shift to positive operating (~$32.1M) and free cash flow (~$25.3M) in TTM, though cash generation remains modest versus the debt load and has been volatile.

Income Statement

Results show severe top-line contraction and persistent losses. Revenue fell sharply in TTM (Trailing-Twelve-Months) (down ~50.5%) and is dramatically lower than prior years, while profitability remains deeply negative (TTM gross margin ~-4.8% and net margin ~-27.7%). Although net losses have narrowed versus 2021–2023 levels, the business is still not demonstrating sustainable unit economics or operating leverage.

Balance Sheet

Leverage is a key constraint. TTM (Trailing-Twelve-Months) debt remains high (~$781M) against a much smaller equity base (~$127M), implying elevated balance-sheet risk (debt-to-equity ~6.2x). Equity was negative in 2024, and profitability on equity remains weak in TTM (Trailing-Twelve-Months) (negative return), indicating limited cushion if operating performance deteriorates.

Cash Flow

Cash generation is a relative bright spot in TTM (Trailing-Twelve-Months), with positive operating cash flow (~$32.1M) and positive free cash flow (~$25.3M), a notable improvement from materially negative cash flows in 2020–2024. However, cash flow momentum is volatile (TTM free cash flow growth is sharply negative), and cash generation is modest relative to the company’s debt load, keeping refinancing and liquidity risk in focus.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.83M	11.61M	893.20M	1.95B	3.18B	1.36B
Gross Profit	-13.46M	11.61M	161.95M	244.79M	202.10M	71.55M
EBITDA	-13.50M	-43.11M	-171.30M	-392.19M	-334.99M	-188.41M
Net Income	-78.22M	-165.12M	-365.54M	-451.91M	-370.91M	-202.80M
Balance Sheet
Total Assets	949.19M	1.07B	1.48B	1.62B	2.37B	1.72B
Cash, Cash Equivalents and Short-Term Investments	12.41M	29.34M	140.07M	419.51M	1.13B	1.06B
Total Debt	781.37M	752.34M	1.23B	985.76M	1.14B	347.38M
Total Liabilities	822.58M	1.10B	1.35B	1.14B	1.45B	496.95M
Stockholders Equity	126.61M	-30.95M	122.15M	475.24M	915.19M	1.23B
Cash Flow
Free Cash Flow	25.29M	-100.52M	-536.31M	-133.30M	-597.10M	-366.58M
Operating Cash Flow	32.06M	-97.04M	-533.68M	-109.06M	-568.69M	-355.25M
Investing Cash Flow	-59.85M	132.57M	173.15M	-164.21M	-104.29M	-11.33M
Financing Cash Flow	13.99M	-165.99M	97.34M	-469.49M	797.71M	1.24B

Vroom, Inc. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.30
• 50DMA: Negative
• 100DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRM, the sentiment is Neutral. The current price of 18.3 is below the 20-day moving average (MA) of 20.71, below the 50-day MA of 23.58, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of -1.10 indicates Negative momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 67.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VRM.

Vroom, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RDNW	56 Neutral	$186.91M	-1.76	-268.06%	―	-12.43%	66.92%
CWH	51 Neutral	$1.35B	-14.17	-26.78%	4.97%	6.58%	-72.69%
UXIN	50 Neutral	$694.79M	-17.34	―	―	―	―
CRMT	49 Neutral	$213.34M	-14.50	-2.60%	―	2.07%	-117.51%
KXIN	46 Neutral	$7.25M	>-0.01	-94.86%	―	-99.25%	90.38%
VRM	44 Neutral	$100.14M	-0.98	-52.02%	―	-81.31%	87.13%

Vroom, Inc. Corporate Events

Vroom Raises $22.5 Million via New Preferred Units

On January 16, 2026, Vroom Automotive LLC, a subsidiary of Vroom, Inc., issued 15,000 Series A preferred units and 7,500 Series B preferred units to SPE Holdings 2026-1 for total gross proceeds of $22.5 million under a new preferred unit purchase agreement and an amended and restated LLC agreement that set the terms for these securities. The new preferred units carry quarterly preferential distributions tied to the 90-day average SOFR plus significant spreads—8.25% for Series A and 9% for Series B—with the Series B units convertible into common units at the holder’s option, while Series A remain non-convertible; Vroom Automotive plans to use the capital for general corporate purposes, strengthening its liquidity and financial flexibility for ongoing operations and strategic initiatives.

The most recent analyst rating on (VRM) stock is a Sell with a $17.50 price target. To see the full list of analyst forecasts on Vroom, Inc. stock, see the VRM Stock Forecast page.

Vroom, Inc. Secures $10.5M Note Purchase Agreement

On November 25, 2025, Vroom, Inc. entered into a Note Purchase Agreement with Robert J. Mylod, Jr., the Independent Executive Chair of its board, to support its long-term business strategy. The agreement involves issuing Senior Secured Delayed Draw Notes with a maximum principal commitment of $10.5 million, initially issuing $5 million, to be used for working capital and general corporate purposes, potentially impacting the company’s financial flexibility and operational capabilities.

The most recent analyst rating on (VRM) stock is a Sell with a $17.00 price target. To see the full list of analyst forecasts on Vroom, Inc. stock, see the VRM Stock Forecast page.

Vroom, Inc. Reports Q3 2025 Financial Results

On November 10, 2025, Vroom, Inc. reported its financial results for the third quarter ending September 30, 2025. The company experienced a net loss of $27.1 million and an adjusted net loss of $25.7 million for the quarter. Despite these losses, Vroom showed a significant improvement in its net loss and adjusted net loss compared to the previous year, with a $94.3 million and $66.8 million improvement, respectively. The company continued to invest in its long-term strategic plan, enhancing its business intelligence and credit decision engines. Vroom emerged from a Prepackaged Chapter 11 Case earlier in January 2025, which impacted its financial reporting through fresh-start accounting, making previous and current financial statements non-comparable.

The most recent analyst rating on (VRM) stock is a Sell with a $22.50 price target. To see the full list of analyst forecasts on Vroom, Inc. stock, see the VRM Stock Forecast page.